Freddie Mac has predicted that $2 trillion in mortgages will be originated this year due to fresh home purchases and refinancing of existing loans. Since $2 trillion is hard to relate to for most of us, here’s what it means. This is the highest volume of mortgages since 2012, the year when mortgage interest rates reached their all-time low the first time of 3.36%. Since then, rates have reached 3.36% one other time in history – during August of 2016.
Freddie Mac Chief Economist says “…This is good news for home sales as we’re likely to see the best year in home sales in a decade. This is a good sign for the housing market as it continues to be an even brighter spot in the economy.”
The interest rate for 30 year mortgages this week comes in at 3.46%, a number that is very close to the all-time low. Freddie Mac predicts that 30 year mortgage interest rates will remain below 3.7% during 2017 due to global economic pressure. This, however, is a prediction (by very informed people!) and the real world can end up being very different.
“All it takes is a few positive employment reports in a row and other favorable results, and you may see rates rise up past that 3.7% number,” said Gerard DiRuggiero, Principal Broker of UrbanLand Company. “The Federal Reserve has final say on benchmark interest rates, and the mortgage industry is a for-profit industry. We could very easily see rates blow past that Freddie Mac prediction should economic conditions allow an increase.”
Want to join in the “housing market bright spot” and stop renting? The best way to get started is to join us at our popular First Time Home Buyer Workshops twice a week. We meet Tuesday nights at 5:30pm and Saturday mornings at 10am where we introduce $0 Down and subsidized down payment programs, and show you how to use the financing strategically in the local real estate market. We’re real estate agents and can smoothly transition you into actually buying and owning a home or condo if you can follow our playbook!
UrbanLand Company Home Buyer Workshops have produced over $30.75 million in purchased homes since 2014 for DC and Maryland residents, many of which are $0 Down or low down payment loans. To find out next Workshop dates, RSVP here. Workshops are FREE of charge and are held at 913 Florida Ave. NW. near the U Street METRO.
Where’s our interest rate numbers come from? We get our data from Freddie Mac’s weekly survey of bank rates around the USA. The actual interest rate on your home loan can be different based on a variety of personal factors, including your credit score, amount of down payment, home purchase price, your debt-to-income ratio and other variables. Email us for how to get pre-qualified for a local mortgage! UrbanLand Company real estate agents have a high degree of success in helping buyers get financed!
Here’s some of the homes we’ve sold to Workshop attendees!